In the Baulmol-Tibin model of money demand, trips to the bank cost $8.5 the interest rate is 9%. If you plan to gradually spend $3,000 this year, how many trips to the bank you should make? What is your average money holding?
In the Baulmol-Tibin model of money demand, trips to the bank cost $8.5 the interest rate is 9%. If you plan to gradually spend $3,000 this year, how many trips to the bank you should make? What is your average money holding?
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 15P
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In the Baulmol-Tibin model of money demand, trips to the bank cost $8.5 the interest rate is 9%. If you plan to gradually spend $3,000 this year, how many trips to the bank you should make?
What is your average money holding?
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